The 50% drop in net income and flat EBITDA are concerning, but the Clarios tax credits ($1B/year), La Trobe monetization (3x return), and DeployCo AI venture provide significant upside optionality. Watch for Q2 2026 results to see if Clarios credits flow through to reported earnings and whether the buyback program is renewed. The corporate simplification may drive index inclusion and further volume gains.
Price Chart
Executive Summary
Brookfield Business Corporation reported Q1 2026 net income attributable to shareholders of $40M ($0.19 per share), down 50% from $80M ($0.38) in Q1 2025. Adjusted EBITDA was essentially flat at $582M vs $591M. The company highlighted $1B in annual Clarios tax credits, a 3x return on its La Trobe sale, and a $500M commitment to the OpenAI Deployment Company. The board declared a $0.0625 quarterly dividend.
Key Financial Metrics
Key Facts
- Net income attributable to shareholders fell 50% YoY to $40M from $80M.
- EPS dropped to $0.19 from $0.38 YoY.
- Adjusted EBITDA was $582M, down 1.5% from $591M YoY.
- Clarios received $1B in cash tax credits; expects ~$1B annually through 2030.
- Sold 27% interest in La Trobe Financial at 3x original investment (35%+ IRR).
- Committed $500M alongside OpenAI to form the OpenAI Deployment Company (DeployCo).
- Completed $250M buyback program; deployed ~$285M total including post-quarter.
- Quarterly dividend declared at $0.0625 per share.
- Corporate simplification completed March 31, 2026; daily trading volumes up ~40%.
- Liquidity of $2B at quarter end; pro forma ~$2.4B.
Financial Impact
Net income halved to $40M; Adjusted EBITDA flat at $582M; $1B annual Clarios tax credits; $500M DeployCo commitment; $285M in buybacks completed.
Risk Factors
- Net income halved YoY — core earnings power declining.
- Adjusted EBITDA flat despite $72M in tax credits — underlying operations weaker than headline suggests.
- $500M DeployCo commitment is unproven and could take years to generate returns.
- High leverage: $44.8B in total borrowings vs $15.5B equity.
- Dividend yield is negligible at $0.0625 quarterly (~$0.25 annual) on a ~$7B market cap.
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3290967 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 15, 2026 6w ago | Institutional Cluster | $28.95 $25.61 | ▼ −11.54% | ▼ −9.56% | $25.71 (−11.19%) |
Aug 14, 2026 7w ago | 6-K | $29.37 $25.87 | ▼ −11.92% | ▼ −9.93% | $25.71 (−12.46%) |
Jul 31, 2026 9w ago | 6-K | $29.63 $27.97 | ▼ −5.60% | ▼ −8.59% | $25.71 (−13.23%) |
May 11, 2026 20w ago | 6-K | $32.72 $32.04 | ▼ −2.08% | ▼ −0.35% | $25.71 (−21.42%) |
May 8, 2026 21w ago | 6-K | $30.85 $32.89 | ▲ +6.61% | ▲ +6.59% | $25.71 (−16.66%) |
May 8, 2026 21w ago | Press Release | $30.85 $32.89 | ▲ +6.61% | ▲ +6.59% | $25.71 (−16.66%) |
Apr 13, 2026 24w ago | 15-12G | $34.11 $31.81 | ▼ −6.74% | ▼ −14.47% | $25.71 (−24.63%) |
Apr 1, 2026 26w ago | Press Release | $33.45 $33.39 | ▼ −0.18% | ▼ −9.90% | $25.71 (−23.14%) |
Mar 31, 2026 26w ago | Press Release | $31.64 $33.30 | ▲ +5.25% | ▼ −4.18% | $25.71 (−18.74%) |
Mar 27, 2026 26w ago | 6-K | $31.65 $33.43 | ▲ +5.62% | ▼ −6.97% | $25.71 (−18.77%) |
US Market Status
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